In 1688, Edward Lloyd, the owner of a coffee shop on Tower Street in London, observed that overseas trade was becoming increasingly risky, and investors were reluctant to invest in overseas trading due to the substantial losses incurred in ships and cargo. So, he conceived a plan to spread the risk over large numbers of ship owners and hence began the worldwide insurance industry. (Microsoft Copilot)

Today, it is impossible to enjoy the benefits of ownership without insurance. The law requires auto insurance to drive. Farmers rely on crop insurance in the event of a catastrophic crop failure. Healthcare is so expensive that failure to have the appropriate health insurance plan can lead to bankruptcy. Nearly every aspect of life requires some form of insurance.

The simple concept of spreading risk over a large number has been turned on its head. Insurance companies are so powerful that they determine the risk pool, even when it includes individuals who pay nothing into the pot. Individual members often lack knowledge of the risks, how losses will be covered, or who is contributing to the plan. The government is currently shut down. One of the primary issues is insurance. Because the concept of insurance has become so distorted from Edward Lloyd’s original vision, many Americans live in fear of losing their home, their livelihood, and the security insurance is supposed to provide.

We need to be informed and disciplined in managing our income and know what insurance we need to protect against material loss. We need to avoid taking risks that are greater than we can afford to take. The best way to do this is to avoid unnecessary debt. Due to the high cost of big-ticket items like houses, vehicles, and appliances, the average person cannot live a debt-free life. Yet, the misuse of credit and insurance can become akin to trusting in a false god. It can lead to pushing our Lord Jesus Christ out of His proper place in this life under the sun.

Faith in our Lord Jesus Christ brings assurance, not insurance. Biblical salvation through Christ assures both life after death and a quality of life with God now under the sun. Concerning Abraham, we read:

.. . with respect to the promise of God, he did not waver in unbelief, but grew strong in faith, giving glory to God, and being fully assured that what He had promised, He was able also to perform. (Rom 4:20-21)

There were times when Abraham acted irrationally and did not wait upon the Lord. Yet God’s testimony concerning Abraham is that he was “the friend of God.” (Jas 2:23b) Isaiah wrote:

Yet those who wait for the Lord will gain new strength; they will mount up with wings like eagles, they will run and not get tired, they will walk and not become weary. (Isa 40:31)

We need to manage the resources God provides now and not yield our freedom in Christ to the bondage of the false securities the world offers.